Monkey - Sounds like the energy dynamics (read politics) down under share some similarities with the situation in the US. Too bad. LOL.

Texas ain't perfect but we are able to separate ourselves to some degree from the federal govt. If you weren't aware Texas was never a territory that was assimilated by the US. We were an independent country for a short while that eventually agreed to join the US. Which was done under a different set of rules then the rest of the states. One reason why Texas has absolute authority over our offshore waters unlike the states on the east coast. Also why the feds aren't involved in our electricity grid.

.Australia is in fact a confederation of independent states , which over a century have been castrated by the Fedsthe trick was to have a monopoly of raising taxes and get the States to dance to get their share .it make for a bunch of useless politicians , used as political shock absorbers the premier of South Australia , in particular, is fond of always blaming the Fed for his own incompetence it goes down well with the retards , a significant block of voters

P.S. Texas would feel at home in Queesland , the most independent minded of all the states I mentioned Western Australia as even bigger , hotter , richer and emptier than Texaswe have also Tasmania where love of the family is stronger than up-country Tennessee they even held the world record for a gun massacre for 13 years

Thanks sparky. Perhaps the first step in addressing the Australian energy problem: accepting it isn't an Australian problem but an individual state problem. But it does appear that some states are on the same grid. Which could actually be an advantage. If State A has the wind/solar resources but not the demand that state could sell to others on the grid. I gather that how one state screwed another: it wouldn't deliver NG to the state that got hit with a blackout but was willing to sell them highly marked up spot electricity. State A, even if it didn't have the monies for the alt infrastructure, could do like the alt builders supplying Georgetown, Texas: use the long term sales contract with the other state to secure the necessary loans. In fact, I might be a case where the state doesn't get directly involved: make a sweet tax deal with the alt investor and let him do the heavy lifting.

It seems like there's got to be some angles in there to play. Looks like the Germans have figured out one.

sparky - Yes, I just discovered AEMO. Has some similarities to the ERCOT in Texas. Given the current price for solar and that I've read that Australia has more solar potential then any other continent (and a lot of empty land away from the coastline) I would think it would be ripe for some free market competition. If the Germans can come half way around the world to make a play you would think some local Aussies would find a way.

The problem is the half arsed approach to the environment by the conservative feds has destroyed any certainty and investment in the renewables market.http://www.abc.net.au/news/2015-04-14/r ... ck/6391748This is why progressive state governments are now pursuing their own targets

Even if the Snowy Mountain Scheme is builtWhich I hope it is if the EPA says its okBut with immigration the 500,000 extra houses it was supposed to service will be added to the list faster than its built.NSW is growing by 100,000 people a year and Vic is growing by 120,000 people a yearhttp://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0

SA better just go it alone because this wont solve their problems in the short or long term

Thanks again Monkey. I've been getting the sense that the political hurdles were as big or bigger problem as the tech and economic components. But I didn't want to dig into that political landscape to confirm. We have enough distractions in the US now to focus on anyone else.

And here comes the Aussie Dutch uncle to save them. I wonder if he'll come to help US consumers as more and more domestic NG production is exported decreasing the amount available to our citizens as it has happened in Australia?

Reuters - Royal Dutch Shell said on Tuesday it will drill 161 new gas wells at its Queensland operations by the end of 2018, helping to underpin its promise to continue supplying 10 percent of the domestic gas market to help prevent a shortage. The wells will help sustain Shell's 75 petajoules of gas supplies a year to eastern Australia's gas market.

The new drilling will not affect exports from Shell's Queensland Curtis LNG plant.

The announcement came a week after Prime Minister Malcolm Turnbull hauled in Australia's gas producers, led by Shell Australia and ExxonMobil Corp, to discuss how to boost supplies in face of warnings from the nation's energy market operator of a looming shortage within the next two years. Gas supply has become a hot issue, following blackouts and brownouts in Australia's eastern states over the past year, and as growth in LNG exports has led to soaring gas prices for manufacturers.

Thanks to onshore production in Queensland, businesses there will pay less than rivals further south, where onshore drilling has been banned or restricted due to opposition from landowners and green groups, said Shell Australia Chairman Andrew Smith. "This is a competitive advantage for Queensland business in attracting manufacturing jobs from Victoria, where gas customers will be forced to pay more for political reasons," Smith said.

And since I did mention exporting US NG to foreign buyers who could outbid domestic consumers: understand Chenier's plan is to control NG going into Henry Hub. Henry Hub where it can source NG for its LNG export operations:

"We are pleased to help facilitate a market solution to STACK and SCOOP producers as they continue to make exciting progress in this important resource basin," said Cheniere President and CEO Jack Fusco in a written statement. "Not only will the Midship Project help meet the Anadarko Basin's need for additional natural gas takeaway and serve demand along the Gulf Coast, it also demonstrates the uniquely integrated market solution Cheniere can provide by leveraging our LNG platform along the entire value chain."

Midship has signed precedent agreements with foundation shippers – Cheniere, Devon Energy Corp., Marathon Oil Corp. and Gulfport Energy Corp. – to support construction of the pipeline, which would provide up to 1,400,000 Dekatherms per day of firm transportation, Cheniere stated.